Series D convertible preferred stock sold with 200% warrant coverage
By Devika Patel
Knoxville, Tenn., May 22 - FreeSeas Inc. said it has arranged a $25 million private placement of series D convertible preferred stock. Dawson James Securities, Inc. is the agent for the deal, which priced on Wednesday.
The company will sell 250,000 units of one preferred and 200% warrant coverage at $100.00 per unit.
The preferreds are convertible into common shares at the lesser of $1.09 and the greater of the closing bid price of the stock on the date preceding settlement and $0.981.
The warrants are exercisable at 130% of the preferred conversion price, rounded to the nearest whole cent.
Settlement is expected May 28.
Proceeds will be used for general corporate purposes and to repay approximately $22 million of debt owed to Credit Suisse.
FreeSeas, based in Athens, is a transporter of dry-bulk cargoes.
| Issuer: | FreeSeas Inc.
|
| Issue: | Units of one series D convertible preferred share and 200% warrant coverage
|
| Amount: | $25 million
|
| Units: | 250,000
|
| Price: | $100.00
|
| Conversion price: | The lesser of $1.09 and the greater of the closing bid price of the stock on the date preceding settlement and $0.981
|
| Warrants: | 200% coverage
|
| Warrant strike price: | 130% of the conversion price
|
| Agent: | Dawson James Securities, Inc.
|
| Pricing date: | May 21
|
| Settlement date: | May 28
|
| Stock symbol: | Nasdaq: FREE
|
| Stock price: | $1.23 at close May 20
|
| Market capitalization: | $30.29 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
